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Credit: Reuters/Baz Ratner JERUSALEM | Sun Jan 29, 2012 6:36am EST JERUSALEM (Reuters) - Peace prospects with the Palestinians are looking poor, Israeli Prime Minister Benjamin Netanyahu said on Sunday after exploratory talks aimed at relaunching negotiations ended in deadlock. "As things stand now, according to what happened over the past few days - when the Palestinians refused even to discuss Israel's security needs with us - the signs are not particularly good," he told his cabinet in public remarks. Palestinian officials said last week an Israeli negotiator's verbal presentation on Wednesday of ideas for borders and security arrangements of a future Palestinian state was a non-starter, envisaging a fenced-off territory of cantons that would preserve most Jewish settlements. Netanyahu said he still hoped the Palestinians would "come to their senses and continue the talks so that we can move on to real negotiations." Israeli and Palestinian negotiators held five rounds of exploratory talks in Jordan, part of a push by international mediators to revive negotiations suspended in 2010 in a dispute over Jewish settlement building in the occupied West Bank. A Palestinian source said no more meetings were scheduled. Palestinian President Mahmoud Abbas has said he wants to consult Arab League states on the next move. An Israeli official said Israel's approach to territorial compromise in the West Bank, captured in the 1967 Middle East war, includes the principle that "most Israelis will be under Israeli sovereignty and obviously most Palestinians will be under Palestinian sovereignty." The official said Netanyahu had acknowledged, in a speech to the U.S. Congress last May, that not all Jewish settlements "will be on our side of the border" with a future Palestinian state. The Palestinians want a state in the West Bank and the Gaza Strip with East Jerusalem as its capital. They say Israeli settlements could deny them a viable and contiguous country. Israel cites biblical and historical ties to the West Bank, an area it calls Judea and Samaria, and says any peace deal must include stringent security arrangements. (Writing by Jeffrey Heller; editing by Tim Pearce) World Israel Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) Eideard wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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